By Mike Baird
Greg and I have spent a heck of a lot of time over the years figuring out the best way to flip a house. And yes, often we’ve learned out lessons the hard way (you can check out some of my nightmare rehabs by watching my YouTube channel)!
Still we’ve got no complaints. Learning how to flip houses and fund them is what’s enabled us to feed our families over the last 8 years but I think it’s safe to say we’ve learned a few things along the way, and among them are the top five essential things you need to flip a house.
1. An Expert Real Estate Team
Now, as you probably already know, we’re real estate agents, so we had a little bit of a leg up on this one. But it’s not hard to build a team of real estate pros to help you find and flip homes. You’ll want to at least have a real estate agent, an appraiser, an inspector, an insurance agent, and a closing attorney on your team, but where can you find real estate experts that you can trust?
Ask other people you know who flip homes. Look at reviews online. Go to real estate investment club meetings. Visit online forums dedicated to the best way to flip a house. Also, start with your real estate agent. A great realtor will be able to help you network with other real estate pros and find the team that suits you best.
2. An expert General Contractor and/or Rehab Team
Once you find and buy a house, though, you’re going to need a little more help with the physical property, itself. When you start to flip homes, you’ll get to know about all kinds of home improvement and rehab details you never had any idea about before. Whether or not you have a flair for DIY home repair, start talking and networking with professionals who work on rehabbing homes.
You’ll never flip a house if you can’t bring its market value up, and you won’t bring its value up without addressing necessary home improvements. If you want to flip homes, start talking to general contractors and home improvement specialists today that you might want to team up with.
3. Knowledge of Property Codes
Now, when you want to flip a house, you’re going to have to make sure that it passes a home inspection when you sell. That means bringing it up to code and knowing a bit about property codes in the area where you flip homes. That doesn’t mean you have to be a code expert, though. If you have a great home inspector on your team, you’ll know what you’re dealing with every time.
4. A Good Understanding of the Local Market
Next, let’s talk about what you need to know about the market. When we’re considering the best way to flip a house, Greg and I look at what we need to do to rehab it and what will make it sell in its area. As we do this, I’ll actually go and view other houses for sale in the area.
So, for example, I might look at a house that’s on the market for the same price we want to get on our house, but we’ll notice that it’s actually bigger and more open than our property. So what’s the best way to flip a house that’s smaller than other houses at its market value? It’s all in the rehab.
When we’ve come across issues like this, we’ve looked at each other and said, “Okay, what do we have to work with? How can we make our house more valuable?” You can’t ask that kind of question if you don’t know what houses are selling for in your area. So get to know the market before you even start to rehab.
Last but not least, this is one I sometimes struggle with… You have to have patience if you want to flip homes. Don’t let emotions get the best of you, and don’t get too excited about the chance to flip a house right this minute. Some houses just aren’t worth the price. Some are gorgeous and a great deal but won’t sell in their markets. The very best way to flip a house is to be patient, do your homework, and be confident about every flip you buy.
There you go, the five things you need to flip a house. Have fun and happy flipping!